RealBlocks

Leveraging Blockchain Technology for Real Estate Investing

Roderick Gill
RealBlocks Blog
3 min readMay 2, 2018

--

RealBlocks is a two-sided platform for investing and raising capital for real estate by utilizing fiat and cryptocurrencies via blockchain technology. Our platform will allow anyone in the world to instantly buy, sell or trade interest in United States Real Estate Assets. By providing access, liquidity and accountability, both real estate and cryptocurrency investors will be able to share in mutually beneficial transactions.

Linking Digital and Real Assets

The market value of cryptocurrency currently sits at $400 Billion and there are very few options for diversifying these currencies among other asset classes. As has been experienced by many people, the extreme volatility of cryptocurrencies can be nerve-racking. Diversifying your crypto portfolio among different types of cryptocurrencies (transactional coins, platform coins, stable coins, utility tokens, security tokens) or dollar cost averaging are often-exercised strategies to hedge risk. However, RealBlocks presents an innovative option that allows cryptocurrency holders to diversify into real estate — the world’s largest physical asset class.

RealBlocks is the pipeline between the vast pool of traditionally inaccessible funds on the blockchain and the real estate industry. With access to hundreds of billions of dollars of new capital, players in the real estate industry will be afforded increased opportunities to raise capital and transact with new participants. For cryptocurrency holders to transact, they will be required to convert their cryptocurrency to USD, or to receive a loan against their cryptocurrency in USD — both of which can be done on the platform. Entities raising capital will be paid in USD. This protects all parties transacting on the platform from the volatility of the cryptocurrency market.

RealBlocks’ Approach

A Marketplace Model

The platform consists of users on the supply and demand side, creating a marketplace for efficiently investing and fundraising for real estate. On the demand side are foreign and domestic real estate investors and cryptocurrency investors. On the supply side are REITs, funds, brokers, developers and family offices.

Unprecedented Liquidity

A prevalent hurdle in real estate is its illiquidity, especially among foreign investors. The traditional buying and selling process would certainly benefit from an expedited transaction timeline. RealBlocks aims to increase the liquidity of real estate by introducing tokenized investments on the platform. Tokenizing provides a way for a real estate assets to be represented in the digital world, as a token. The benefits of investing in real estate on RealBlocks include a lower barrier to entry, near instant liquidity, and the ability to create and trade fractional ownership of assets. Members can choose to buy entire assets or tokenized fractional interest in assets via REITs or private placements for lower minimums than have ever been possible — starting at just $50.

A New Age Standard for Transparency

A considerable benefit of leveraging blockchain technology is the unmatched transparency, which is ensured by the validity and traceability of the immutable ledger. RealBlocks requires a satisfactory completion of both Anti-Money Laundering (AML) and Know Your Customer (KYC) screenings before users are able to credit their wallet. This process ensures that all users are properly vetted and that we are in compliance with regulatory requirements. Another degree of transparency will be implemented through property-specific smart contracts, which will provide passive income to purchasers on a monthly basis. Smart contracts are automatically executed when specific conditions are met, further implementing autonomy, trust and accuracy.

Leveraging Blockchain Technology for Real Estate Investing

At RealBlocks, we have created a bridge between cryptocurrencies and real world assets. By leveraging the blockchain and smart-contracts, users will have the benefit of global access, improved liquidity, and a transparent process — all for minimums never possible until now. The RealBlocks platform and its tokenized system of fractional ownership has many applications. As the platform grows, RealBlocks will bring best-in-class investments from additional markets to investors — thereby extending its value proposition to other types of assets beyond real estate.

Log on to our platform for a pre-launch preview of our inventory!

--

--